The Globe and Mail reports in its Friday, April 12, edition that Newmont Mining shareholders have voted more than 98 per cent in favour of the company's $10-billion (U.S.) acquisition of Goldcorp. The Globe's Niall McGee writes that a week ago, Goldcorp shareholders also voted in favour of the deal.
The transaction, expected to close later this quarter, means Newmont will bypass Toronto's Barrick Gold and take the triple crown as biggest gold company in the world by market value, production and reserves.
Newmont, however, must now follow through on its promises. It said it can wring $365-million (U.S.) a year in cost savings out of combining with Goldcorp. As well, Newmont and Barrick said they expect to generate an average of $500-million (U.S.) in savings over the first five years from a joint venture agreement they reached to combine their Nevada gold-mining operations.
Barrick had attempted to acquire Newmont in a hostile takeover and thwart its acquisition of Goldcorp, but reached an agreement with Newmont on the joint venture as an alternative.
RBC Dominion Securities analyst Stephen Walker, who has an "underperform" rating on Newmont's shares, is taking a wait-and-see approach.
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